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Benefits of the Railroad Industry

Benefits of Freight Rail Service:

Railroad move over 40 percent of all ton-miles of intercity freight, nearly as much as trucks, barges and airlines combined. Nationally, railroads transport 70% of automobiles and trucks, 64% of coal, 40% of grain and 20% of chemicals. In Indiana, railroads moved nearly 100.1 million tons of freight in 1999. The Federal Highway Administration (FHWA) recently conducted a benefit-cost analysis on the effects of improved freight transportation are many. Advantages include cost reductions to shippers, increased reliability and reduced transit times. (from 2002 Indiana Rail Plan)

The delivery of goods by rail represents a cost efficient option available to Indiana businesses and consumers. One rail car can carry the volume of 3-4 trucks. In addition to the cost savings associated with shipping costs, the use of the rail option saves the state of Indiana in highway maintenance costs

Benefits of Passenger Rail Service

The existence of passenger rail service in Indiana provides our residents with an alternate mode of transportation that has many direct and indirect benefits. The degree to which travelers utilize an intercity passenger or commuter rail option can result in less highway congestion, and a reduction in polluting automobile emissions. Recent improvements in intercity passenger service offers Indiana residents more frequent service to an increasing number of destinations. Commuter rail service enables large numbers of workers to get to their places of employment more efficiently than single occupancy vehicles.

One of the major benefits of rail passenger service is the reduction in highway traffic congestion. As with freight rail service, an additional benefit is a savings in highway maintenance.